Indiana’s unemployment rate went up a tenth of a percent in June, the first time in three months it has increased.
Though Indiana added 14 hundred private sector jobs last month, its unemployment rate increased to eight percent. That still trails the national unemployment rate of 8.2 percent. University of Indianapolis economist Matt Will says one of the things that troubles him most about June’s employment figures is job losses in specific sectors.
“We saw a decline in the hospitality and leisure industry which is a little bit of a concern to me because this time of year that industry should be picking up employees, not reducing employment,” he says.
Will says he wouldn’t characterize June’s overall employment picture as either positive or negative and says it’s too early to identify a definite trend. Still, he says there are storm clouds ahead.
“I don’t know how bad they’ll be, but we definitely see some problems on the horizon,” Will says. “People like the fact that the energy costs have dropped recently. But they also don’t understand that that’s because of a lack of demand from the manufacturing sector.”
Will says while Indiana has largely been able to insulate itself from an economic slowdown on the national level, it can’t hold out forever.